The matching formula in a retirement plan document, often seen as simple and predictable, can actually be a major source of compliance problems. While employers may assume it's straightforward and "set it and forget it," in reality, it frequently causes operational failures and costly corrective actions, making it one of the most common pitfalls for plan sponsors.
The Institutional Retirement Income Council forecasts that next year will see a significant shift toward broader adoption of in-plan retirement income solutions, driven by growing interest in retirement income innovation. In 2025, the industry focused on laying the groundwork through options like target-date funds, annuity marketplaces, systematic withdrawal programs, managed accounts with income features, and middleware integrations. By 2026, consultants and advisers are expected to implement standardized fiduciary evaluation frameworks to help plan sponsors assess, compare, and adopt these features.
Several major interest groups -- including the ERISA Industry Committee, U.S. Chamber of Commerce, and National Retail Federation -- filed a joint amicus brief with the U.S. 8th Circuit Court of Appeals. They urged the court to uphold a lower court's June ruling that dismissed a 401k forfeiture complaint against Wells Fargo. The original decision, issued by U.S. District Judge John Tunheim, found that the plaintiff, Thomas Matula Jr., a former employee and plan participant, failed to state a valid claim. Matula appealed dismissal in July.
Annually, the IRS releases updated indexed limits and cost-of-living adjustments for the upcoming tax year, affecting various provisions of the Internal Revenue Code, including income tax deduction rates and retirement plan contribution limits. This article explains how the updated maximum dollar limits apply across multiple defined contribution retirement plans.
Recent lawsuits have challenged 401k plan sponsors over using plan forfeitures to offset future employer contributions, even when allowed by plan documents. A California district court ruled in favor of the sponsor, stating such claims would add benefits not provided under the plan and conflict with ERISA's established practice of permitting forfeitures under plan terms. Similar rulings in Mississippi and Texas also supported employers.
A House Education and Workforce Subcommittee held a hearing titled "Pension Predators: Stopping Class Action Abuse Against Workers’ Retirement." Chairman Rick Allen emphasized the need to protect workers' retirement savings and employers from what he called baseless, predatory class action lawsuits. He highlighted that ERISA safeguards benefits for over 155 million Americans, with plans collectively holding more than $14 trillion to ensure financial security.
After years of delays, legislation allowing 403b retirement plans to use collective investment trusts is close to approval. The House of Representatives is expected to vote on the bipartisan INVEST Act next week. This package combines 20 previously passed bills, including the Retirement Fairness for Charities and Educational Institutions Act, which would amend securities laws to permit CITs and certain insurance accounts in 403b plans, aligning them with 401k rules. The Act was introduced on Dec. 2 by key lawmakers to reduce regulatory barriers, support small businesses, and expand investment options.
As employers, payroll providers, recordkeepers, and plan administrators prepare for the 2026 Roth Catch-up Rule deadline, an important decision is whether to adopt the optional "deemed Roth election" provision. This provision allows employers to automatically classify catch-up contributions from high earners as Roth contributions once they reach the annual elective deferral limit. These FAQs explain the scope and application of the deemed Roth election provision, outlining its potential benefits and drawbacks for plan design.
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Collected Wisdom™
Our researchers look for what they think are some of the better resources available to assist you in administering your plan or helping your clients. We group these resources in our COLLECTED WISDOM™ topics to make it easy for you to locate the information you need. Each item in a category contains a summary and date of when it was placed in the group.
We also maintain some older material in these collections for perspective and context.
